While you are working, your employer is required to make contributions into your superannuation fund equal to a rate of 9.5% of your salary. After-tax income contribution payments that you make, After-tax contributions that your employer makes on your behalf, Contributions your spouse makes to your super fund (unless your spouse makes contributions as your employer). Contribution type Annual cap or limit (2020/2021) Concessional (before-tax) contributions: $25,000 regardless of age; If you have a Total Super Balance of less than $500,000 on 30 June of the previous financial year, you can utilise any unused amount of your cap for up to 5 years to make a carry-forward contribution; Non-concessional (after-tax) contributions contributions, your salary-sacrificed contributions, or any contributions claimed as a tax deduction. The non-concessional contribution cap for 2020-21 is $100,000, provided your total super balance on 30 June 2020 was less than $1.6 million. We currently manage over $5 billion. In 2020-21, once an employee’s income reaches $228,360 per year, then the super is calculated based on that maximum, it does not keep rising. The minimum you must pay is called the super guarantee (SG): contributions, your salary-sacrificed contributions, or any contributions claimed as a tax deduction. That means that the most a business would normally be expected to contribute in super for a single employee is around $21,694 in 2020-21. They may come from your employer (such as the 9.5% superannuation guarantee), salary-sacrifice arrangements with your employer or tax-deductible personal contributions. Your total super balance, as at 30 June of the previous financial year, must be less than $1.6 million. The cap is set at $1.6 million as at 1 July 2017 and is indexed annually subject to increments of $100,000. After-tax super cap: $100,000 – but could be more where members use the ‘bring forward’ rule. Super contribution rules if you're close to $1.6m cap. They include employer contributions, salary sacrifice contributions and contributions claimed as a tax deduction. Total Super Balance (on 30 June of previous financial year), Bring-Forward Rule** (triggered in 2017-18), Bring-Forward Rule** (triggered in 2016-17 but not fully utilised by 30 June 2017). contributions cap due to the higher contributions required under the Local Government Act. Therefore, a person may receive SGC contributions on a salary in excess of the maximum super contribution base if, for example, the employee was on a high income and changed jobs part-way through a quarter, or if the employee had two different high paying jobs. So it’s worth understanding the SG rules and how they work. See our Super Sort-out page or call us on 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays. When applying the ‘extra’ tax, the ATO allow for the fact that your super fund has already paid 15% tax within the fund. Employees can withdraw excess contributions to super, although they have to pay income tax on any earnings from the excess contributions. Concessional contributions are before-tax contributions made into your super fund from a number of potential sources. The PDS is relevant when deciding whether to acquire or hold a product. Concessional contributions are super contributions from income that tax has not already been paid on. Read on. What are concessional contributions? SG contributions are the compulsory contributions made by your employer into your super account on your behalf as part of your pay. Employer Contributions Employers are obligated to make SG contributions to their eligible employees’ super accounts, currently at a minimum rate of 9.5% of the employee’s wages, or ordinary time earnings. Concessional Contributions Cap From 1 July 2017, the general concessional contributions cap dropped to $25,000 for all ages. Need to know more about before tax and after-tax super contribution caps and limits? contributions are generally contributions which are made by you or for you from any after-tax income. Read on. If you earn above this quarterly limit, your employer does not have to make contributions for the part of your earnings over the limit. Your concessional contribution cap includes your employer’s contribution (under the Superannuation Guarantee), and voluntary super contributions such as those made under a salary sacrifice arrangement, as well as personal after-tax contributions that you claim a tax deduction on. Under the SG, compulsory superannuation is set at a percentage of each employee’s regular income – usually at least 9.5% of an employees’ ordinary time earnings. An untaxed plan cap of $1.565 million 4 per super fund applies to the untaxed benefit in West State Super. 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